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A bill to amend the Securities Act of 1933 to subject crowdfunding vehicles to the jurisdiction of the Securities and Exchange Commission, and for other purposes.

USA115th CongressS-3213| Senate 
| Updated: 7/16/2018
Michael F. Bennet

Michael F. Bennet

Democratic Senator

Colorado

Cosponsors (1)
Dean Heller (Republican)

Banking, Housing, and Urban Affairs Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Crowdfunding Amendments Act This bill amends the Securities Act of 1933 to allow a crowdfunding issuer to sell shares through a crowdfunding vehicle. (Crowdfunding is a method of capital formation in which groups of people pool money to invest in a company or to support an effort to accomplish a specific goal.) A "crowdfunding vehicle" is defined as a company that: has purposes limited to acquiring, holding, and disposing only one class of crowdfunding securities issued by a single company; receives no compensation for doing so; and meets other specified requirements, including those related to reporting obligations and the use of investment advisers. The bill amends the Investment Advisers Act of 1940 to provide for the registration of crowdfunding vehicle advisers. The bill amends the Securities Exchange Act of 1934 to revise the conditions upon which the Securities and Exchange Commission (SEC) shall exempt securities issued in crowdfunding transactions from registration requirements. Under current law, holders of crowdfunded shares do not count toward the shareholder threshold beyond which an issuer is required to register its securities with the SEC, provided that the issuer: (1) is current in its annual reporting obligations, (2) retains the services of a registered transfer agent, and (3) has less than $25 million in assets. The bill maintains this exemption but alters the conditions upon which it applies. Specifically, holders of crowdfunded shares shall not count toward the shareholder threshold if the issuer has: (1) a public float of less than $75 million, or (2) a public float of $0 and annual revenues of less than $50 million.
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Timeline
Jul 16, 2018

Latest Companion Bill Action

HR 115-6380
Introduced in House
Jul 16, 2018
Introduced in Senate
Jul 16, 2018
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  • July 16, 2018

    Latest Companion Bill Action

    HR 115-6380
    Introduced in House


  • July 16, 2018
    Introduced in Senate


  • July 16, 2018
    Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.

Finance and Financial Sector

Related Bills

  • S 115-488: Encouraging Employee Ownership Act
  • HR 115-6380: To amend the Securities Act of 1933 to subject crowdfunding vehicles to the jurisdiction of the Securities and Exchange Commission, and for other purposes.
  • S 115-1031: A bill to amend provisions in the securities laws relating to regulation crowdfunding to raise the dollar amount limit and to clarify certain requirements and exclusions for funding portals established by such an Act.
Bank accounts, deposits, capitalBanking and financial institutions regulationFinancial services and investmentsLicensing and registrationsSecurities

A bill to amend the Securities Act of 1933 to subject crowdfunding vehicles to the jurisdiction of the Securities and Exchange Commission, and for other purposes.

USA115th CongressS-3213| Senate 
| Updated: 7/16/2018
Crowdfunding Amendments Act This bill amends the Securities Act of 1933 to allow a crowdfunding issuer to sell shares through a crowdfunding vehicle. (Crowdfunding is a method of capital formation in which groups of people pool money to invest in a company or to support an effort to accomplish a specific goal.) A "crowdfunding vehicle" is defined as a company that: has purposes limited to acquiring, holding, and disposing only one class of crowdfunding securities issued by a single company; receives no compensation for doing so; and meets other specified requirements, including those related to reporting obligations and the use of investment advisers. The bill amends the Investment Advisers Act of 1940 to provide for the registration of crowdfunding vehicle advisers. The bill amends the Securities Exchange Act of 1934 to revise the conditions upon which the Securities and Exchange Commission (SEC) shall exempt securities issued in crowdfunding transactions from registration requirements. Under current law, holders of crowdfunded shares do not count toward the shareholder threshold beyond which an issuer is required to register its securities with the SEC, provided that the issuer: (1) is current in its annual reporting obligations, (2) retains the services of a registered transfer agent, and (3) has less than $25 million in assets. The bill maintains this exemption but alters the conditions upon which it applies. Specifically, holders of crowdfunded shares shall not count toward the shareholder threshold if the issuer has: (1) a public float of less than $75 million, or (2) a public float of $0 and annual revenues of less than $50 million.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline
Jul 16, 2018

Latest Companion Bill Action

HR 115-6380
Introduced in House
Jul 16, 2018
Introduced in Senate
Jul 16, 2018
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  • July 16, 2018

    Latest Companion Bill Action

    HR 115-6380
    Introduced in House


  • July 16, 2018
    Introduced in Senate


  • July 16, 2018
    Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Michael F. Bennet

Michael F. Bennet

Democratic Senator

Colorado

Cosponsors (1)
Dean Heller (Republican)

Banking, Housing, and Urban Affairs Committee

Finance and Financial Sector

Related Bills

  • S 115-488: Encouraging Employee Ownership Act
  • HR 115-6380: To amend the Securities Act of 1933 to subject crowdfunding vehicles to the jurisdiction of the Securities and Exchange Commission, and for other purposes.
  • S 115-1031: A bill to amend provisions in the securities laws relating to regulation crowdfunding to raise the dollar amount limit and to clarify certain requirements and exclusions for funding portals established by such an Act.
  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
Bank accounts, deposits, capitalBanking and financial institutions regulationFinancial services and investmentsLicensing and registrationsSecurities